Cajun Chicken, a Growing Franchise Chain Based in Lafayette, Louisiana

question 106

Multiple Choice

Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good.
-In granting franchise rights,Cajun would be the _____ and the buyer would be the _____.

• A)franchisee / franchiser
• B)franchiser / subsidiary
• C)parent / subsidiary
• D)franchiser / franchisee

Assess the impact of unionization on productivity and investment.

Explore the historical trends in union membership and its economic implications.

Discuss strategic factors making strike threats effective or ineffective.

Understand the characteristics of competitive price-taker markets.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers.

Cash Inflow

The movement of money into a business or project, contributing to its financial resources.

Payment to Suppliers

Financial transactions that involve settling debts with vendors who provide goods or services to a business.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.